Health insurers are invited to participate in benefit exchange

New York has officially invited health insurers to participate in its health benefit exchange.

The federal health care reform act requires states to offer online marketplaces where individuals and small businesses can shop for health coverage. New York is one of 17 states setting up its own exchange, while 33 states plan to refer people to a national option.

About 1.1 million New Yorkers -- 615,000 individuals and 450,000 employees of small businesses -- are expected to enroll in the state exchange beginning this October, with coverage starting next January.

While the reform act puts most people under a mandate to purchase coverage, it does not require insurers to take part in exchanges.

In order to participate in the state exchange, insurers must submit a non-binding letter of interest to the New York State Health Department by Feb. 15.

The exchange is still under development, and there are still a number of questions to be answered. Six regional advisory committees, made up of a total of nearly 200 providers, insurers, brokers, business groups and consumer advocates, have been meeting since September to discuss their concerns and make recommendations.